| While scientists developed sensory-input devices | | | | accounts.Virtual economies are an integral part of |
| to mimic the sensations of a virtual world, the | | | | synthetic worlds. The buying and selling of goods, |
| games industry eschewed this hardware-based | | | | as the game's inhabitants go about their daily |
| approach in favour of creating alternative realities | | | | business, lends realism and vibrancy to the virtual |
| through emotionally engaging software. "It turns | | | | realm. But in-game economies tend to be unusual |
| out that the way humans are made, the | | | | in several ways. They are run to maximise fun, |
| software-based approach seems to have much | | | | not growth or overall wellbeing. And inflation is |
| more success," writes Edward Castronova in an | | | | often rampant, due to the convention that killing |
| illuminating guide to these new synthetic | | | | monsters produces a cash reward and the supply |
| worlds.Millions of people now spend several hours | | | | of monsters isunlimited in many games. As a |
| a week immersed in "massively multiplayer online | | | | result, the value of in-game currency is constantly |
| role-playing games" (MMORPGs). These are often | | | | falling and prices are constantly rising.Mr |
| Tolkienesque fantasy worlds in which players | | | | Castronova's analysis of the economics of fun is |
| battle monsters, go on quests, and build up their | | | | intriguing. Virtual-world economies are designed to |
| virtual power and wealth. Some synthetic worlds | | | | make the resulting game interesting and enjoyable |
| are deliberately escapist; others are designed to | | | | for their inhabitants. Many games follow a |
| be as lifelike and realistic as possible. Many have a | | | | rags-to-riches storyline, for example. But how can |
| strong libertarian bent. Sociologists and | | | | all the players end up in the top 10%? Simple: the |
| anthropologists have written about MMORPGs | | | | upwardly mobile human players need only be a |
| before, but Mr Castronova looks at the | | | | subset of the world's population. An underclass of |
| phenomenon from a new perspective: | | | | computer-controlled "bot" citizens, meanwhile, |
| economics.Mr Castronova's thesis is that these | | | | stays poor for ever. Mr Castronova explains all |
| synthetic worlds are increasingly inter-twined with | | | | this with clarity, wit and a merciful lack of |
| the real world. In particular, real-world trade of | | | | academic jargon.Some of his conclusions may |
| in-game items, swords, gold, potions, or even | | | | sound far-fetched. In particular, he suggests that |
| whole characters is flourishing in online | | | | as synthetic worlds continue to grow in popularity, |
| marketplaces such as eBay. World of Warcraft | | | | substantial numbers of people will choose to spend |
| Gold, EQ2 Gold, DAOC Plat and other game | | | | large parts of their lives immersed in them. Some |
| currencies have been traded in dedicated | | | | players could then fall victim to what Mr |
| webstores for many years. This means in-game | | | | Castronova calls "toxic immersion", in which their |
| items and currency have real value. In 2002, Mr | | | | virtual lives take precedence, to the detriment of |
| Castronova famously calculated the GNP per | | | | their real-world lives.But perhaps this is not so |
| capita of the fictional game-world of "EverQuest" | | | | implausible. It is already possible to make a living |
| as $2,000, comparable to that of Bulgaria, and far | | | | by working in a virtual world, as the "farmers" |
| higher than that of India or China. Furthermore, by | | | | demonstrate. In one survey, 20% of MMORPG |
| "working" in the game to generate virtual wealth | | | | players said they regarded the game world as |
| and then selling the results for real money, it is | | | | their "real" place of residence; Earth is just where |
| possible to generate about $3.50 per | | | | they eat and sleep. In July, a South Korean man |
| hour.Companies in China pay thousands of people, | | | | died after a 50-hour MMORPG session. And the |
| known as "farmers", to play MMORPGs all day, | | | | Chinese government has recently tried to limit the |
| and then profit from selling the in-game goods | | | | number of hours that can be spent playing |
| they generate to other players for real | | | | MMORPGs each day.As technology improves, |
| money.Land and other in-game property has been | | | | players could make enough money to pay for the |
| sold for huge sums. In some Asian countries, | | | | upkeep of their real-world bodies while they |
| where MMORPGs are particularly popular, in-game | | | | remain fully immersed in the virtual world. Mr |
| thefts and cheats have led to real-world arrests | | | | Castronova is right when he concludes that "we |
| and legalaction. In one case in South Korea, the | | | | should take a serious look at the game we have |
| police intervened when a hoard of in-game money | | | | begun to play."Richard Kingston, 14-year veteran |
| was stolen and sold, netting the thieves $1.3m. | | | | MMORPG player, is an internationally recognized |
| In-game money is, in short, no less real than the | | | | expert on computer gaming, virtual markets. |
| dollars and pounds stored in conventional bank | | | | |